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2023-12-31-accounts

Burton End Lodge, Stansted Hall, Stansted, Essex CM24 8UD

ANNUALREPORT 2023 Report and Statement of Accounts

01279 814158 office@snutrust.co.uk www.snutrust.co.uk

SPIRITUALISTS NATIONAL UNION TRUST Investing in Spiritualist Churches since 1926 www.snutrust.co.uk

CONTENTS Report and Statement of Accounts 2023

MESSAGE FROM OUR CHAIRMAN 4
Trevor Critchley - A Tribute 5
MINUTES OF THE 2023 SNU TRUST AGM 7
SNU TRUST ANNUAL REPORT 15
About us 16
Our aims & objectives 17
Our Vision 18
Our Mission 20
2023 fnancial review 24
Assets of the SNU Trust 25
Investment strategy 26
Investments 28
Loans to churches 30
Reserves policy 31
Trustee-directors 33
Induction of trustees 35
Ray Taylor Memorial Fund 36
Principle risks 37
Trustee-Directors’ responsibilities 40
TRUSTEES, STAFF, AUDITORS & BANK INFORMATION 42
INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF SNU TRUST 45

SNU T R UST AN N U AL R E P O R T

TREVOR CRITCHLEY 1959 - 2023

A MESSAGE FROM OUR CHAIRMAN

Dear Member

Working for the NHS for so long has deepened my understanding of the concept of service. That little ‘S’ does a lot of heavy lifting.

I feel truly honoured to have been selected to take over the chair of the SNU Trust by my fellow trustees.

Losing our dear friend Trevor Critchley to Spirit was a difficult time for us all. I intend to build upon his legacy and leadership for as long as I remain in post. Like Trevor, I will continue to focus on helping our members, maintaining and building relationships, whilst also aiming to attract new members.

Silver Birch said that “service is the coin of the Spirit”. I hold those few words very close to my heart and will always strive to be of service to you, our members.

During 2023, the Board, under Trevor’s leadership, laid out its vision for the charity and made plans to take actions to enable the charity to fulfil its mission in the coming years. Details of what the Trust wants to achieve and how it intends to make it happen can be found in the annual report. We will be talking about this more at our Annual General Meeting in Newcastle on 29 September 2024 and we hope that as many of you as possible will be able to join us.

My financial expertise is limited having worked for the NHS for the past 45 years. However, I spent well over a decade as a Church treasurer and worked closely with the Trust when we were purchasing our own building for the first time. I have also spent several years as treasurer of my District Council so have firsthand experience of the problems faced by many of our members.

We look forward to seeing you in September.

I was raised to help others whenever, wherever, and however possible and I intend to carry this philosophy forward in my stewardship of the Trust.

It was with great sadness that the Board announced the passing to spirit of Trevor Critchley, the former Chairman of the SNU Trust, in December 2023 and wanted to remember and pay tribute to him as his contributions and leadership led us to where we are today.

Trevor was known by so many people across our Spiritual family, many of you will know that Trevor was renowned for having a wicked sense of humour, a glorious welcoming smile and a genuine passion to improve lives.

He was known as a true advocate for Spiritualism conducting his life and his business with sincerity, integrity and pragmatism, bringing the Brotherhood of Man to life through his relentless commitment and service to the SNU Trust, various other charitable organisations, his family and friends and his fellow man.

The Board will be forever grateful for Trevor giving the Trustees incredible support and a firm foundation for us to take forward and create opportunities for growth, progress and on-going assistance to our members.

Trevor will continue, no doubt, to inspire us all to be the best we can be and lead a principled and moral life.

TIM COOMBE | CHAIRMAN

MINUTES OF THE ANNUAL GENERAL MEETING OF THE SNU TRUST

HELD ON SUNDAY 16[th] JULY 2023 AT THE HOLIDAY INN NORTH, NORWICH 9.30am

SNU T R UST AN N U AL R E P O R T

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COMMITTEE OF MANAGEMENT:

COMMITTEE OF MANAGEMENT:

IN ATTENDANCE:

Trevor Critchley (Chairman) | Ken Smith Jane Barton | Tim Coombe | Minister Myrrha Hibbert

Lesley Gilbey

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Jane Barton welcomed everyone to the Annual General Meeting and introduced the Board of Trustees.

WELCOME

CREDENTIAL REPORT

Proxy Forms Received 9 Representatives 15 Visitors 52 Total Voting Strength 24

Jane advised the meeting that both Trevor Critchley and Minister Myrrha Hibbert were unable to attend the meeting in person, but they hoped to join online if possible. Jane informed the delegates that in Trevor’s absence, she would be chairing today’s meeting.

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APOLOGIES FOR Trevor Critchley – Trustee ABSENCE Minister Myrrha Hibbert - Trustee

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TELLERS:

APPOINTMENT

OF TELLERS AND SCRUTINEERS

Minister David Bruton (Fund of Benevolence) Mary Gledhill (Scarborough SC)

SCRUTINEERS:

Helen Lomax (Manchester DC) Robert Dangerfield (Stourbridge)

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MOTION 1 - MINUTES OF 2022 AGM

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MATTERS

ARISING FROM THE 2022 AGM MINUTES

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STATEMENT OF ACCOUNTS AND ANNUAL REPORT

Jane invited the delegates to review the minutes of the 2022 Annual General Meeting and highlighted two corrections:

That the draft minutes of the 2022 Annual General Meeting be approved.

Proposed: Robert Dangerfield (Stourbridge) Seconded: Peter Newsome (Castleford)

Adopted.

Minister Bruton confirmed that his question from the floor during the 2022 Annual General Meeting had been answered to his satisfaction after the meeting.

Jane Barton presented the 2022 SNU Trust accounts to the Annual General Meeting.

The SNU Trust accounts in 2022 showed a healthy surplus of £100,000 and the charity is now seeing the benefit of the hard work done to move the charity forwards in the last five years.

The majority of income received by the SNU Trust during the year is from sources where the level of income can be reasonably accurately assessed. Jane highlighted that the interest that the charity earns on loans to members represents the smallest aspect of the income, and in 2022 that figure has reduced as churches repay the amounts outstanding and the Trust is happy to see this trend continue.

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continued

STATEMENT OF ACCOUNTS AND ANNUAL REPORT

The overheads of the Trust are carefully managed and remain steady year to year. The vast majority of expenditure is used on charitable activities, the largest amount being paid back to members who invest with the Trust.

During 2022 the amount of interest paid over to members increased by over 20% and the rates offered on deposits has continued to rise during 2023. Jane noted that in the current economic climate the Board understand the need to pass any increase in rates on to members to help support them whenever possible.

The grants made to members is something that the Trustees want to actively promote. The Ray Taylor Memorial Fund has been increased by the Trust in the year and is there to help member churches who are facing financial hardship. The Trustees and staff will pick up on any cases that may qualify for help, but Jane asked that if anyone was aware of a church that needs support, then please contact the Trust office.

As interest rates continue to rise the Trust is working hard to ensure that any cash held by the Trust in bank accounts is regularly reviewed to ensure that the charity makes the most of any accounts on offer. The income earned by the Trust from bank interest in 2022 increased significantly and this trend has continued into 2023.

Over the last few years, the SNU Trust has reported surpluses in excess of £95,000 which has come about because expenses faced in preceding years, for example legal costs of changing the charitable status, have not needed to be paid.

However, the Board are conscious that during 2023 there are going to be some significant renovations required at the property in Edinburgh and as such, it is anticipated that the surplus for the current year will fall back. The costs have been factored into the planning for the year and the cash to cover these repairs is held in reserves.

The Board review the rates paid on accounts at each meeting, and between meetings if necessary, to ensure that the interest paid to members is as generous as possible.

STATEMENT OF ACCOUNTS AND ANNUAL REPORT

It is important that a balance is struck to ensure that all members, those lucky enough to be comfortable, those who only have small amounts to invest, and those who have loans, are treated as fairly as possible.

Each year the Trust has offered a one-year account to all members paying a very generous rate of interest for investing £1,000 of new money with the Trust. After feedback to the Trustees, the Board have this year altered the account on offer to ensure that even more members can take part.

Jane advised that the SNU Trust will be offering the following accounts:

Members can only open one of the accounts and should therefore select which is best for them. Please remember that this is for new investment into the Trust and money cannot be transferred from accounts already held.

Application forms are available from the SNU Trust website, from the meeting this weekend or direct from the Trust office. All members will be sent the details in the next couple of weeks as well.

CHURCH LOANS

The Trust understands that churches may not feel that it’s the right time to be looking to take out loans from the Trust as most are still recovering from the events of the last few years. However, the Trust is still here to help, and is pleased to be helping a church in the Northern District to plan for the future.

Jane assured the meeting that any loan given is carefully considered by the Board and affordability for the church involved is of paramount importance.

The Trust has been looking at the issue of Green Loans for some time and is now in a position to offer small loans up to £2,000 to members for projects that have a positive impact on the environment. This can be solar panels but equally it can be a new boiler or insulation. More information can be provided from the Trust office.

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STATEMENT OF ACCOUNTS AND ANNUAL REPORT

STRATEGY AND RESERVES

The total income for the Trust in 2022 was £481,000 and it is anticipated that this figure could exceed £500,000 during this year. Once that happens the reporting that the Trust is required to do increases and the Board are taking the opportunity to review both the strategy and the Reserves of the charity.

Back in 2019 when the Trust moved from its old Trust status to a charitable limited company, it was hoped to use the change to drive the charity forward, to encourage more SNU churches to become members and to continue the modernisation of the charity. Plans were put in place but unfortunately covid got in the way.

The Trustees decided to move ahead with the change of logo and last August the new website was launched. A lot of work has taken place both behind the scenes on processes, and on reports and products literature but there’s still more to do.

When speaking to churches who are not members of the SNU Trust, it is apparent that the church committees are looking for the accounts and the service provided to be comparable with other financial institutions. That’s a fair thing to do and the Board has been conscious for some time that a lot of the ways in which the Trust operates stems from the old Building Fund Pool of decades ago.

STATEMENT OF ACCOUNTS AND ANNUAL REPORT

THE ENVIRONMENT

Whilst the primary purpose of the Trust is based around helping members with finances, the Board is conscious that we all also need to pay attention to the world around us.

The grounds of Burton End Lodge is not as lovely as those of the college, however the lawn to the back of the building wasn’t utilised in any meaningful way. Some ideas were considered to enable the grounds to be put to better use.

Various projects were considered, and the most appropriate use has been to turn to beekeeping. The Trust has joined forces with the Bishops Stortford Beekeeping Association and there are now multiple hives on the lawn.

The plan is to create more hives to help the bee population, and therefore the honey is left in the hives allowing them to be split when required.

To help the bees further, this summer the grass has been allowed to grow up with the hope seeing a wildflower meadow appear. Work still needs to be done however some wild orchids did appear and it’s hoped that the flowers and grasses left this year will self-seed and provide an even better environment for the bees next year.

Jane concluded her presentation by inviting questions from both delegates and visitors.

As most churches are discovering, the demands made on charities by banks, auditors, the charity commission, and other bodies are increasing all the time. Some of the changes are there to safeguard us all and this got the Board thinking.

The Trustees recognised the need to put together a document that ensured all churches, members, and non-members, could clearly understand how the Trust is governed, and how membership with the Trust works. Simple things like keeping contact details up-to-date and what happens if something goes wrong.

The SNU Trust has therefore put together a set of terms and conditions that form a basis on which membership operates. There’s nothing in there that doesn’t already happen, but it’s time it was formalised rather than relying on custom and practice. It’s hoped that it will make life easier for existing members and possibly even encourage a few new ones.

Again, the document can be accessed from the website and a copy will also be sent to each member in the next few weeks. Copies are also available here this weekend if anyone would like to take a look.

MINISTER DAVID BRUTON (FUND OF BENEVOLENCE)

Lesley Gilbey, Finance Manager of the SNU Trust, responded on behalf of the Board.

Minister Bruton noted that the Trust’s

annual report states that the remuneration of the brokers is based on the value of the portfolio. He therefore asked for clarification on the investment portfolio charges shown in the 2022 accounts as despite a reduction in the value of the portfolio in line with the experience of all charities, the fees have risen when compared to 2021.

Lesley explained that in 2020, five quarters’ fees were accounted for meaning that in 2021, only three quarters were reported to redress the balance. Fees in 2022 are for the full accounting period and does not reflect any increase in fees paid.

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MOTION 2 -

ANNUAL REPORT AND ACCOUNTS

THAT the draft annual report and accounts for the financial year ended 31 December 2022 be approved.

Proposed: Minister David Bruton (Fund of Benevolence) Seconded: Rita Jones (Broadgate Coventry) Adopted.

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MOTION 3 - APPOINTMENT OF AUDITORS

THAT Price Bailey be appointed as the auditors for the Trust for the forthcoming year, and THAT the auditors’ remuneration shall be determined by the Trustees.

Proposed: Jane Barton (Spiritualists’ National Union Trust) Seconded: Minister Jackie Wright (Spiritualists’ National Union) Adopted.

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DECLARATION OF ELECTION

VALID NOMINATIONS RECEIVED:

Jane Barton 27 Tim Coombe 26 Minister Myrrha Hibbert 26

There were no new validly nominated candidates and all remaining committee members were appointed for the coming year. Jane informed the meeting that the SNU Trust is continually looking to recruit suitably qualified Trustees and asked anyone interested in joining the Board to contact the Trust office.

SNU TRUST ANNUAL REPORT

& FINANCIAL STATEMENTS FOR THE PERIOD ENDING 31 DECEMBER 2023

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ANY OTHER BUSINESS

In closing the meeting Jane extended her thanks to Lesley Gilbey and all the staff at the SNU Trust for their dedication and support towards all churches as well as the Board of the SNU Trust.

Jane also thanked both the General Manager of the SNU Head Office, Rachael Loukes as well as the National Executive Committee of the Union.

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DATE & VENUE

To be on the weekend of the SNU AGM 2024.

Registered in England and Wales No. 11382378 Charity No 1182379 (England & Wales) Charity No SC049738 (Scotland)

OF 2024 AGM

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ABOUT US

The Trustee-Directors have pleasure in presenting their Annual Report together with the audited financial statements for the charity for the period ended 31 December 2023 and confirm they comply with the Charities Act 2011, the Charities Statement of Recommended Practice second edition 2019 and FRS 102.

ensuring that our business model was fit for the 21st century.

The Spiritualists National Union Trust (the SNU Trust) was founded in 1926 as a type of mutual building society for churches affiliated to the Spiritualists’ National Union (SNU). The Trust operates independently of the SNU with its own Board of TrusteeDirectors and supporting staff.

We have a team of three staff: a Finance Manager, a Finance Administrator, and an Accounts Assistant, who are responsible for the day-to-day running of the charity. Overall responsibility for the Trust lies with the Board of five Trustee-Directors, supported by other professional advisors.

In May 2018 the SNU Trust became incorporated and took over the assets of the original SNU Trust, allowing us to continue the work of the previous entity whilst

OUR AIMS & OBJECTIVES

Everything the SNU Trust does is governed by our charitable objects which set out the main purpose of the charity and what we aim to achieve.

We promote the advancement of SNU Spiritualism by providing financial support to SNU affiliated churches in three ways:

Offering accounts that pay competitive rates of interest

Give loans for new buildings or repair of existing ones

Award grants to help churches in need

The Trust therefore ensured that its objects allowed the organisation to purchase and make available properties by way of lease, this is an area that the board are keen to pursue in the coming years.

The charity is aware that social and economic circumstances have changed considerably since the Trust was originally formed and not all churches are able to afford the costs involved in owning and maintaining their own premises.

PUBLIC BENEFIT STATEMENT

STRATEGIC REVIEW

Over the last five years, and especially during the last twelve months, the SNU Trust has seen a significant shift in how it needs to operate. With this in mind the Board has conducted a full strategic review.

The Trust has regard to the Charity Commission guidance on public benefit and how SNU churches exist to promote the seven principles of Spiritualism which encourages its followers to become socially responsible within the wider community.

By discussing why the SNU Trust exists, and what it hopes to achieve, the Board has made the decision to take actions during the next three years in order to achieve its vision in time for the SNU Trust’s centenary year in 2026.

The Trust, by financially supporting SNU Spiritualist churches, encourages a religious practice that leads to promoting spiritual welfare and improvement of society.

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VISION

The vision of the Trustees is to create a sustainable and safe platform for all SNU Spiritualist churches to thrive and grow, with the intention that all would become members of the SNU Trust, providing them with practical help and support relating to all aspects of their finances.

To enable the SNU Trust to achieve its vision, the Board has taken time to explore why SNU churches might not wish to become part of the Trust.

NAME OF THE CHARITY

The SNU Trust has, for many years, looked at ways to encourage all SNU churches to want to become a member of the Trust and has engaged with all churches to establish what makes churches join, or not join, the charity.

Feedback from churches and individuals was that the name of the charity was confusing, and some church committees felt that by investing with the SNU Trust, they were actually giving their funds to the Union. In 2018, when the Trust changed its legal structure, the charity considered changing its name but after consultation with the attendees at the Annual General Meeting, it was found that a name change alone wouldn’t help and could actually be counterproductive.

REGULATION

Trustees of churches are mindful that deposits with the SNU Trust are not covered by the Financial Services Compensation Scheme (FSCS). Only financial institutions registered with the Financial Conduct Authority (FCA) are covered by FSCS and the SNU Trust is not registered.

The activities of the SNU Trust are laid out in the Memorandum and Articles of the charity, and they are restricted to providing facilities to churches affiliated to the Spiritualists’ National Union. The FCA consider that, due to the limited nature of its activities, the SNU Trust is exempt from registration however this situation is reviewed regularly to ensure compliance with all legislation.

In 2018 the Board explored the option of voluntarily registering with the FCA, to provide comfort to all members and to offer reassurance to those churches who were hesitant to join.

It became apparent that the costs relating to the registration process, and the annual ongoing licencing and administration fees, would run into thousands of pounds each year. In order to justify the level of investment needed, the Board would need to be confident that it was a good use of resources.

After consideration it was felt that the expense that would be incurred on a continuing basis, using resources that could be used to directly benefit members, to attempt to reassure a handful of nonmembers, was not an appropriate use of reserves.

Instead, the Board agreed to explore other ways to offer reassurance by explaining its position to all SNU churches as well as to build the charity’s reserves and establishing a designated fund designed to eventually match the funds held on deposit by members.

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MISSION

The mission of the SNU Trust is to provide our members with financial and practical support to enable them to continue their work promoting the advancement and diffusion of SNU Spiritualism within their community.

It is hoped that any SNU church, member, or non-member, finds that the SNU Trust provides fair, impartial, and straightforward advice should it be requested from the charity. However, the Board is conscious that the Trust needs to be more proactive, rather than reactive, to the needs of all churches and has been looking at ways in which this can be done.

INTERACTION WITH CHURCHES

HOW DO WE MAKE THIS HAPPEN?

When seeking feedback from churches, it has become clear that committees would appreciate more regular updates and information from the Trust.

Actions have already been taken to put in place changes that are felt to bring a more appropriate approach to areas such as the reserves policy, more details of which can be found later in this report. However, the SNU Trust Board understand that to achieve the vision outlined above, more resource is needed in terms of time to devote to the strategy, there needs to be better use of data already held and outside expertise should be sought where necessary.

The launch of the new website in 2022 was a step towards achieving this goal and the next step is to establish a mailing list of individuals who would like to receive regular newsletters via e-mail. This will be available to all SNU churches and District Councils.

As churches have now returned to normal post-covid it is hoped that Trustees will become more visible at church and District events giving everyone the opportunity to engage and ask questions.

Throughout 2024 the Trustees and staff will be working to implement a strategic plan to enable the charity to fulfil its vision.

PLANS FOR 2024 AND BEYOND

The Board will focus on three areas in 2024 which will allow the charity to understand its current effectiveness and gain a better understanding of how to improve its ability to improve the Trust’s impact on its members.

AREAS

Increase awareness of Increase engagement charity and the added Commit to disburse 40% with existing members value it brings to all of budget to members SNU churches

MEASURES

Website traffic

Number of members Number of church engaging at AGM interactions measured by credential report

By gathering this information, it allows the Board to better understand the charity’s strengths and weaknesses, allowing it to plan for the future by making decisions that will ensure the SNU Trust can make a lasting impact on the SNU churches it was established to support.

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VISION

To create a sustainable and safe platform for SNU Spiritualist Churches to thrive and grow in their pursuit of community engagement and the promotion of Spiritualism, where all SNU churches can become members, finding help and support for their financial needs.

----- Start of picture text -----
MISSION
To provide our members with financial
and practical support to enable them to
maintain their commitment to promoting
the advancement and diffusion of
SNU Spiritualism.
VALUES VALUES
The Seven Principles The SNU Trust operates
are fundamental to the with a culture of
values of the SNU Trust openness, transparency,
and form the basis of and respect, subject to
the ethical leadership complying with legal
and culture within and regulatory
the charity. requirements.
VALUES VALUES
The interest of the The SNU Trust, and
members and the work those who work and
they undertake within volunteer in and with the
the community are at Trust, uphold the highest
the heart of what the level of institutional
SNU Trust does. integrity and personal
conduct at all times.
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2023 FINANCIAL REVIEW

Whilst one of the primary objects of the SNU Trust is to give loans to member churches, the income the charity receives from interest on those loans makes up only 3.6% of the charity’s total income (2022 4.4%). The amount of loans outstanding in 2023 has reduced from £689,241 to £636,089, as churches make repayments however a loan for £50,000 was approved during the year which has not yet been drawn down by the member.

The main income streams for the SNU Trust are derived from dividends paid on a portfolio of stocks and shares managed by Quilter Cheviot, rental income from properties, and management charges to the Spiritualists’ National Union for accounting services.

Each year, interest paid out to members forms the largest cost for the SNU Trust. The Board meet quarterly and always review the credit interest paid on all accounts to ensure that the Trust remains competitive. All other expenses are carefully controlled, and we are always looking at ways to be more effective and efficient.

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INCOME 2023 2022
Rental income £166,864 £164,044
Interest on Advances £19,165 £21,228
Management Charges to SNU £64,928 £49,175
Investment Income £276,285 £246,941
£527,242 £481,388
EXPENDITURE 2023 2022
Raising Funds £56,524 £56,566
Governance £42,495 £31,157
Other Support Costs £71,432 £41,678
Depreciation £6,212 £9,687
Staff Costs and Training £121,373 £105,731
Interest to investors £161,156 £135,075
Grants to members £1,728 £230
£460,920 £380,124
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ASSETS OF THE SNU TRUST

The total assets of the SNU Trust are £13,091,251 (2022 £11,949,300), are unrestricted in their nature, and are held in various ways to ensure that the charity limits its exposure to financial risk.

The assets include members’ deposits and of those assets, £9,125,729 (2022 £8,742,288) relates to church deposits and sundry creditors leaving £3,965,522 (2022 £3,207,012) in SNU Trust reserves.

The approach of the Board has always been to ensure that all funds are invested in multiple ways to ensure that, if necessary, the Trust’s assets could be liquidated to ensure that members are fully repaid (2023 £9,096,334 2022 £8,714,159). To that end the assets of the charity are spread across the following areas:

ASSETS 2023 2022
Investment Property £2,085,000 £1,752,500
Property for Charitable purposes £1,015,982 £1,015,982
Loans to Members £636,089 £689,241
Cash £1,624,761 £1,404,405
Fixed Assets £195,171 £201,383
Sundry Debtors £35,310 £25,056
Investments £7,498,938 £6,860,733
£13,091,251 £11,949,300

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INVESTMENT STRATEGY, OBJECTIVES & TARGET

The SNU Trust has a detailed investment policy that set out clear objectives and the parameters as to how we manage our reserves. The general principles are:

To produce the To grow the capital To generate a best financial of the portfolio over return of inflation return within an the long term as plus 3.5% pa over acceptable level well as generating the long term, of risk income after expenses

To adopt an exclusionary policy in To be mindful of being respect of investments a responsible investor in Armaments

OVER THE LONGER TERM

Any investments with the Trust’s brokers are viewed as a longer-term investment and that means that it is expected that there could be some moderate disruption to the capital value of any investments, although 2023 showed an increase in capital value at the year end.

Since 2017 the value of the portfolio has increased overall and importantly the income received totalling more than £1.4 million has enabled the charity to continue to support SNU churches.

MANAGEMENT OF THE PORTFOLIO

The SNU Trust continues to work closely with the charity’s broker, Quilter Cheviot Investment Management, and during 2023 have met regularly with our account manager to assess and review the management and performance of the SNU Trust portfolio.

The charity receives quarterly valuation and performance reports in addition to information around how the Brokers are engaging with organisations to hold them to account on business decisions and strategy.

The cost of managing the portfolio by Quilters is calculated as a percentage of the value of the portfolio at the end of each month; Quilter Cheviot therefore have a vested interest in ensuring the maximum growth of the Trust’s portfolio whilst ensuring that any investment adheres to the strict parameters laid out in the agreed Investment Policy.

OVER THE LAST FINANCIAL YEAR

The final quarter of 2023 saw the value of the portfolios bounce back to end the year resulting in an unrealised gain of £359,346.

Despite widespread concerns at the beginning of the year, most major economies have fared better than feared in the higher interest rate environment. The UK defied widespread forecasts for a recession, and the US has reported solid growth figures. The European Union may have slipped into a recession but if this is the case, it has been fairly insignificant thus far.

The investment income received during the accounting period was in line with the income in 2022, as forecast. The income in 2024 is expected to increase by around 3%.

It should be noted that the increases in the Bank of England’s base rate during 2023 do not have a direct impact on the dividends received by the Trust.

Inflation fell significantly during the year and the cost of utilities fell back from the levels seen in 2022 helping ease the burden a little for members, although costs have not returned to their previous levels.

Since the inception of the of the portfolio on 1 August 2016, Quilter Cheviot has achieved an overall (capital and income) return of 65.8% after expenses, against the stated annual target of CPI plus 3.5% which over the same period stands at 60.5% and therefore the actual return received over the period since inception is higher than the target.

The Bank of England increased the base rate from 3.5% to 5.25% over the course of the year however it is anticipated that rates will fall back in the second half of 2024.

Quilter Cheviot is instructed to manage the portfolio on a discretionary basis, and they are mindful of the objective of the portfolio at all times.

ASSET CLASSES 2023

To ensure that the risk is managed appropriately within the portfolio, we hold a diversified range of assets.

QUILTER CHEVIOT PORTFOLIOS

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2023 2022
UK Equities £1,518,214 £1,508,364
UK Fixed Interest/bonds £976,369 £768,751
Overseas fixed interest/bonds £61,583 £112,396
Quilter Cheviot Investor Growth Fund £783,303 £707,704
Overseas Equities £2,990,802 £2,695,051
Alternative Investments £714,470 £950,854
Cash £154,197 £117,613
£7,198,938 £6,860,733
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RESPONSIBLE INVESTMENT

Although the only specific exclusion in the investment policy relates to armaments, the Trust is always mindful to pay close attention to its responsibilities as investors. The Board ensure that our fund managers take environmental, social and governance (ESG) issues into account when making decisions about the charity’s portfolio. These considerations, including details on engagement undertaken by Quilter Cheviot, form part of the regular reviews. As a charity, we believe in active engagement rather than divesting ourselves of holdings, this allows us to be part of the force for positive change.

PROPERTY INVESTMENTS

The SNU Trust own three properties in the south of England that are leased out on long term agreements to Choice UK who provide assisted living for adults with learning disabilities and other long-term needs. The Trust is not involved in the management or operation of the homes.

PALMERSTON PLACE

The SNU Trust owns a property in Edinburgh which, for twelve years, has been home to both Edinburgh Association of Spiritualists and Palmerston Trust, a charity based in Scotland whose objects are based around the Seven Principles. The property is held as a charitable investment and as such, the Board of the SNU Trust has scope to take into consideration the aims of the tenant when reviewing the investment as part of the Trust’s wider portfolio.

The Trustee-Directors are mindful that whilst the rent charged to Palmerston Trust should be reflective of its core objects of the furtherance of spiritualism, it must be balanced against the need to ensure a return that would ultimately enable the charity to pass any financial benefit on to all members.

Both Palmerston Trust and Edinburgh Association are in year four of five-year agreements which incorporate annual rental uplifts which will result in a return on investment of 3.75% in the final year.

The leases on all the care homes are full repairing leases and as such, Choice UK are responsible for all repairs, maintenance, and insurance of the properties. The SNU Trust incur no costs during the year relating to these properties.

The Trust regularly appraises the market value of its investment properties to ensure an appropriate income return on investment and that the valuation of the investment properties accurately reflects their market value. In 2023, Neil Oxford, of Christie & Co Surveyors, reviewed the valuations of the buildings and the Trustee-Directors will continue to monitor the markets.

The SNU Trust continued to receive rental income of £135,150 (2022 £135,150) from Choice UK which generates a return on Investment 6.48% (2022 7.71%).

----- Start of picture text -----
MV
31-12-23 Total: £2,085,000
£745,000
£685,000
£655,000
£0
Chafen Road Pine Tree Twynham
Lodge
----- End of picture text -----

----- Start of picture text -----
RETURN
2023 6.48%
----- End of picture text -----

----- Start of picture text -----
8.21%
6.26%
4.82%
0%
Chafen Road Pine Tree Twynham
Lodge
----- End of picture text -----

CHURCH DEPOSITS

Churches continue to experience financial pressure due to the rise in energy prices along with inflation however members have been working hard and there has been a net increase in member deposits of around 4.4% for the accounting period. This supports the anecdotal evidence from within the Trust office which daily receives calls painting an improving picture for SNU churches.

The Trust continues to provide support and advice for member and non-members, and through this interaction the SNU Trust has gained new investment from existing members, as well as new members. The Board would like to extend its thanks to those churches for their continued support.

In 2023, a 1-6-1 account was made available to those members fortunate enough to be able to invest a further £1,000 with the Trust for one year. It was pleasing to see that 41 churches took advantage of the generous rate of 6%.

Following feedback from members, the Trust also offered a 5-5-1 account, inviting members to invest £500 for one year at a rate of 5%. Whilst only one church took up the offer, the Board will continue to offer products that allow as many members as possible to benefit from the rates available.

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Products and interest rates offered to churches are reviewed at each Trustee-Director meeting to ensure that the charity continues to encourage existing and new members to further invest with the Trust. The SNU Trust is aware of the importance of the income provided to churches by way of interest on any savings held and the Board is always mindful to hold up rates on credit balances whilst holding rates down on loans whenever possible to support members to the best of their ability.

LOANS TO CHURCHES

In recent years, the SNU Trust has had minimal applications for loans from members who have been, understandably, reluctant to enter into any longterm financial commitments.

During 2023 the SNU Trust received one application from North Shields Spiritualist Church, (2022 nil), who after a number of years of renting premises, was finally able to purchase its own church. This was achieved with the cooperation of the Spiritualist National Union, and the SNU Trust was happy to provide financial support to refurbish the interior. The church has not yet drawn down any funds as work is yet to start however the Trust looks forward to being able to share the project with its members when completed.

It is important that churches taking out loans are able to comfortably afford the repayments over the full term and we work closely with any church to ensure that they are able to repay without difficulty. The SNU Trust takes care to not put any church committee or its members under financial pressure.

Any application must ensure that the church can demonstrate an ability to meet any repayments based on normal church activities. Whilst we understand that plans may include additional events that would generate income, it would be difficult to sustain this over the full term of any loan.

As any loan must be secured, the member will need to notify the SNU of any plans and we would encourage the member to contact them at the outset. A crucial part of any project is

to ensure that there is complete understanding of the total financial commitment of any work and the Union are able to assist in obtaining the appropriate surveys, quotes and other costings. Once any loan is agreed and the charge is in place, the Trust is unable to lend any further funds without going through the application process again.

There are no penalties for overpayments or early repayment, and we encourage churches to clear their loans as soon as possible without putting themselves under financial pressure.

RESERVES POLICY

The current reserves policy guiding the Board of the SNU Trust was written a number of years ago and is structured to provide financial support to the various parts of the charity that could experience issues in the face of unforeseen circumstances.

When reviewing the charity’s strategy, the Board revisited the policy in light of the pandemic, where significant global events had little impact on the finances of the Trust.

The reserves policy of any organisation is traditionally based around building sufficient reserves to allow it to cover its known liabilities, absorb setbacks and move forwards and this has historically been the approach of the SNU Trust.

The SNU Trust is in an unusual position in that its accounts reflect a negative working capital position, that is to say should its members all wish to withdraw their funds at the same time, then the charity would need to sell some of its longer-term investments to meet its commitment. It is for this reason that the current policy has been looking to build reserves.

The Board considered whether this concept has led the SNU Trust to be particularly cautious in its decision making and may become detrimental to the members of the Trust going forward. It was agreed that what makes the Trust charitable is what is spent, not what is saved and that decisions should centre around what is best for the members whilst ensuring the long-term future of the charity.

Focussing on building a reserve that will ultimately match members deposits, when it is hoped that those deposits will increase year on year, means that the charity may lose sight of helping current members by distributing more of the Trust’s income on a regular basis whilst striving to meet a target that will, in reality, take decades to achieve.

The Board has therefore agreed that the reserves policy be redrawn and has agreed the following policy for the accounting period 31 December 2023. The policy will be kept under review to ensure that it continues to be appropriate.

The SNU Trust has agreed that the charity’s desired level of unrestricted reserves should be sufficient to enable the charity to continue its day-to-day activities, using its reserves where necessary to support the needs of its members whilst building a contingency to safeguard the future of the SNU Trust. It is anticipated that the funds will be utilised during each accounting period, with the exception of the Contingency Fund, and that the level of each fund will be reviewed on an annual basis.

At the year end the level of unrestricted funds was £3,023,086 (2022 £2,597,076)

The Trustee-Directors have agreed that the current reserve should be divided into smaller funds targeting specific areas of activity of the charity. This will give comfort that in the event of unforeseen circumstances the SNU Trust has made provision to ensure the continuation of the SNU Trust in supporting Spiritualism.

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DESIGNATED FUND - CHARITY OVERHEADS

The General Fund will cover working capital for the SNU Trust for a 12-month period, currently £250,000 and representing 8.3% of the total Unrestricted Reserves and is reviewed annually at the December meeting of the SNU Trust to ensure that the level of the fund is set at an appropriate level.

DESIGNATED FUND – PROPERTY COSTS

This designated fund makes allowance for the costs relating to properties owned by the SNU Trust for both investment purposes and as programme related investments.

DESIGNATED FUND – MEMBERS

A designated fund should be set aside to cover for disbursements to members by way of credit interest and other payments during the course of the year.

DESIGNATED FUND – RAY TAYLOR MEMORIAL FUND

The Ray Taylor Memorial Fund was established in memory of Ray Taylor, a former TrusteeDirector of the SNU Trust, who was a proponent of churches facing financial hardship.

During 2023 the Board agreed to increase the available resource within the fund to £10,000.

DESIGNATED FUND – CONTINGENCY FUND

All remaining funds should be utilised to support the long-term future of the SNU Trust.

TRUSTEE-DIRECTORS

The SNU Trust, like all voluntary bodies, continues to find it increasingly difficult to identify new Trustee-Directors to welcome on to the Board.

The Trustee-Directors are mindful that this is something that has been a cause for concern for a number of years and it is a matter that is discussed at each meeting of the Board as this is a key risk which must be addressed.

The current Trustee-Directors are aware that in order to safeguard the future of the charity, it is important to encourage more people to get involved to ensure a continuous approach to growing the charity to support SNU churches in the future.

Whilst the SNU Trust is primarily focused on finance, there are other areas of qualification or experience required of Trustee-Directors which would be beneficial to the charity including legal, property or governance sectors. However, the Board recognises the value of any volunteer who would like to support the SNU and its affiliated churches and would be happy to lend time and experience to the organisation.

Trustee-Directors are elected by SNU Trust member churches for a period of two years, with half retiring in alternate years. The retiring Trustee-Directors can be renominated and serve for a maximum of eight consecutive years, unless the TrusteeDirectors consider it would be in the best interests of the charity to continue to serve beyond that point, and that the TrusteeDirector is appointed in accordance with the Articles.

THE ROLE OF THE BOARD OF TRUSTEES

At its simplest, the role of the trustee board is to monitor the assets of the charity, safeguard them and apply them to the charitable purposes of the SNU Trust. The trustee board must always act in the best interests of the SNU Trust, exercising the same standard of duty of care that a prudent person would apply if looking after the affairs of someone for whom they have responsibility. The trustee board must act as a group and not as individuals.

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DUTIES OF A TRUSTEE BOARD MEMBER

The duties of a trustee board member are to:

In addition to the above statutory duties, each trustee should use any specific skills, knowledge or experience they have to help the board of trustees reach sound decisions. This may involve leading discussions, identifying key issues, providing advice and guidance on new initiatives, and evaluating or offering advice on other areas in which the trustee has particular expertise.

MINIMUM TIME COMMITMENT

Trustees are expected to attend all board meetings. Board meetings are held four times a year at dates agreed by all Trustees, usually but not exclusively on Saturdays if on site and evenings if via remote conferencing. Accommodation is provided should this be required due to the trustee’s location or circumstances. A December meeting each year is allotted to strategic planning and is an on-site meeting. Meetings last approximately five hours on site, and remote conferencing last approximately two hours.

The board of trustees collectively needs skills and experience in the following areas:

INDUCTION OF TRUSTEES

Before joining the Board of the charity, new Trustees are asked to sign up to the SNU Trust Code of Conduct, a copy of which is available via the SNU Trust website.

Throughout 2024, all Board members will attend courses on various matters such as investments and human resources, as well as a refresher course on duties of trustees.

Churches have been asked to consider if anyone of their members would be interested in becoming a Trustee-Director, or if they would like to gain a better understanding of what would be required in the role, they are encouraged to contact the SNU Trust Head Office and speak to Lesley Gilbey. Alternatively, Tim Coombe, the Chair of the SNU Trust can be contacted directly.

Trustees are provided with a copy of the charity’s governing document and a copy of the latest published accounts and annual report.

Trustees are given information and support prior to meetings to ensure that they are fully supported, enabling them to have the confidence to participate in any decisionmaking discussions with confidence.

PERSON SPECIFICATION

Each trustee must have:

GOVERNANCE AND MANAGEMENT OF THE CHARITY

The Trustees of the SNU Trust oversee the governance of the charity and delegate the dayto-day management of the charity to the Finance Manager, Lesley Gilbey. The staff work as a team to deliver support and service to all SNU affiliated churches, whilst also providing accounting support to the Spiritualists’ National Union.

Decisions regarding financial matters as well as planning for the future of the charity are discussed by the Board and the actions required to enact those decisions are passed to the Finance Manger to take forwards.

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RAY TAYLOR MEMORIAL FUND

The Ray Taylor Memorial Fund was established in memory of Ray Taylor, a former Trustee-Director of the SNU Trust, who was a proponent of churches facing financial hardship.

Grants are awarded to member churches where a need is identified for financial assistance with essential items and applications are invited though the charity’s website. However, if the charity becomes aware of a member who could benefit from the Fund then this will be considered by the Board.

In 2023 the Ray Taylor Memorial Fund shared the cost of eradicating Japanese knotweed from the grounds of Moston Spiritualist Church by making a grant of £1,727.60.

In late 2023 Blackwood Spiritualist Church began work to renovate its staircase to give safe access to the upper floors for its members. The Trustees were made aware of this and agreed a grant of up to £1,000 to allow the church to update its kitchen area as well. The grant has not yet been paid.

During 2023 the Board agreed to increase the available resource within the fund to £10,000.

INTRODUCTION OF TERMS AND CONDITIONS OF MEMBERSHIP

The Board has been conscious for some time that a lot of the ways in which the SNU Trust operates stems from the old Building Fund Pool of decades ago. As part of the Trust’s ongoing modernisation plans, it was felt that all churches, members and non-members, should be able to clearly understand how the Trust is governed, and how a membership with us works. Simple things like keeping contact details up-to-date and what happens if something goes wrong.

The SNU Trust therefore provided a set of terms and conditions to all members, that form a basis on which their membership operates. The details in the booklet reflect the current processes already in place and there are no changes in the way in which the accounts are administered. The Trust has taken the opportunity to set everything down in writing rather than relying on custom and practice. It’s hoped that it will make life easier for our existing members and possibly even encourage a few new ones! The booklet can be accessed via our website and additional copies are available on request.

PRINCIPLE RISKS

The SNU Trust assess all risks the charity may encounter at each meeting identifying the following as key risks.

The identification and recruitment of new Trustee-Directors continues to be an urgent priority for the SNU Trust during 2024. There are currently five Trustee-Directors, however a maximum of eight can be appointed to the Board. Steps taken to address this matter have been outlined earlier in the report.

RECRUITMENT OF NEW TRUSTEEDIRECTORS

The Trust operates a register of interests for all TrusteeDirectors and the Trust has developed and published a detailed policy on managing potential conflicts of interest and loyalty, a copy of which is published on our website and is available to download. This policy outlines the responsibility of TrusteeDirectors when considering any potential conflict which may affect their ability to make a decision as part of their duty as Trustee-Director. At each meeting of Trustee-Directors, a complete record of current declarations is circulated to the attendees and Trustee-Directors are asked to declare any changes in their register of interests and loyalty; the register includes details of membership of SNU Committees, Churches, allied Trusts and any contractual involvement that TrusteeDirectors might have with members of the Trust.

CONFLICT OF INTEREST

A Trustee-Director will withdraw from any discussion or decisionmaking in respect of any matter in which a conflict of interest may arise.

The SNU Trust has a comprehensive disaster recovery plan which is a documented, structured set of instructions to allow the Trust to respond to unplanned incidents and have the ability to continue to operate or quickly resume critical functions. The plan is accessible to all staff and Trustee-Directors and is constantly under review.

DISASTER RECOVERY PLAN

The Trustee-Directors have taken steps to ensure that the integrity of the data and documents held by the Trust will not be compromised. Computer data is securely backed up both on and off site and its reliability is tested as part of the Trust’s Disaster Recovery Plan. Important documents are kept in a fireproof safe.

DATA SECURITY

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PRINCIPLE RISKS continued

The SNU Trust has adopted the Internal Financial Controls for Charities Guidance (CC8) provided by the Charity Commission to ensure that essential checks and procedures are completed to ensure that the Trust meets their legal duties to safeguard the charity’s assets.

FRAUD PREVENTION

Additional measures have been implemented designed to ensure that members funds are only used for their intended purposes; the signatory mandates which are sent out to members annually have been reviewed and updated to include changes which will give further protection.

The Trust aims to maintain remuneration at levels that enable the charity to recruit and retain employees of suitable calibre and motivate them to achieve their set objectives.

REMUNERATION POLICY

Remuneration of all staff is reviewed annually in December when the Board reviews the remuneration of all staff as advised by the Trustee-Director with responsibility for Human Resources and makes decisions on adjustments required. Any changes made take into account market movements applying to the role within the sector and all decisions are subject to overall budget approval by the board for the year in question.

The Charity understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate.

FUNDRAISING COMPLIANCE

The SNU Trust does not raise any funds from the general public and can confirm that no internal resources are used for this purpose. In addition, the charity does not commission a professional fund-raiser/commercial participator for fundraising.

The charity is not subject to an undertaking to be bound by any voluntary scheme for regulating fund-raising, or voluntary standard for fund-raising in respect of activities on behalf of the charity.

The SNU Trust has adopted principals of GDPR legislation and also has policies to protect the data of members of the public.

The Board confirms that no complaints were received during the year about activities for the purpose of fund-raising.

PRINCIPLE RISKS continued

The purpose of Higginson Securities Limited is to hold the legal charges in favour of the charity relating to members’ secured loans owed to the SNU Trust. Going forwards, any legal charges acquired after May 2019 will be held by the SNU Trust and when all historic charges are released, Higginson Securities Limited will be wound up.

CUSTODIAN TRUSTEE-DIRECTOR

All title deeds relating to properties owned by the Trust are held by the SNU Trust.

The SNU Trust is governed by Articles of Association, a copy of which can be obtained by contacting our office. The SNU Trust is registered at the Charity Commission (reg no 1182379), The Office of the Scottish Charity Regulator (reg no SCO49738) and with Company House (reg no 11382378).

GOVERNING DOCUMENTS

The members of the Committee of Management during the year ended 31 December 2023 and to the date of this report were: -

T Coombe (Chairman)

K Smith

Minister P Seymour

J Barton

Minister M Hibbert

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TRUSTEE-DIRECTORS’ RESPONSIBILITIES

In preparing the Trustee-Directors’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) company law requires the directors to prepare financial statements for each financial year.

Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the directors are required to:

The Trustee-Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee-Director Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustee-Directors are aware:

The Trustee-Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

BY ORDER OF THE COMMITTEE TIM COOMBE, CHAIR

Date: 27 April 2024

Principal address: Burton End Lodge Stansted Hall Stansted Essex

CM24 8UD

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BOARD OF TRUSTEES SERVING DURING 2023

MR TREVOR CRITCHLEY (to 24.12.23)

CHAIRMAN

TRUSTEE/DIRECTORS

MRS JANE BARTON MINISTER MYRRHA HIBBERT MINISTER PAT SEYMOUR (from 24.10.23) MR TIMOTHY COOMBE MR KENNETH SMITH

BANKERS

NATWEST BANK PLC

HERTS CM23 2TJ

ALDERMORE BANK

CAMBRIDGE & COUNTIES BANK

CHARNWOOD COURT

5B NEW WALK

LEICESTER

LE1 6TE

CLOSE BROTHERS GROUP

10 CROWN PLACE

EC2A 4FT

EC2A 2EW

OUR STAFF

RESPONSIBLE FOR THE DAY-TO-DAY RUNNING OF THE CHARITY.

SOLICITORS

FINANCE MANAGER LESLEY GILBEY FINANCE ASSISTANT JULIE ROGERS FINANCE ADMINISTRATOR NADINE YOUNG

BIRKETTS LLP

PROVIDENCE HOUSE

IP1 1QJ

AUDITORS

PRICE BAILEY LLP

TENNYSON HOUSE,

STOCKBROKERS

CAMBRIDGE BUSINESS PARK,

CAMBRIDGE

CB4 0WZ

QUILTER CHEVIOT

EC4V 4AB

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES & MEMBERS OF SPIRITUALISTS’ NATIONAL UNION TRUST

OPINION

We have audited the financial statements of Spiritualists’ National Union Trust (the ‘charity’) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in trustees’ report.

We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

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We gained an understanding of the legal and regulatory framework applicable to the charity and how it operates and considered the risk of the charity not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements. In relation to the charity this included employment law, financial reporting and health & safety.

The risks were discussed with the audit team and we remained alert to any indications of noncompliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

USE OF OUR REPORT

This report is made solely to the charity’s trustees and members, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s trustees and members those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees and members as a body, for our audit work, for this report, or for the opinions we have formed.

Suzanne Goldsmith (Senior Statutory Auditor) for and on behalf of PRICE BAILEY LLP

Chartered Accountants Statutory Auditors Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Date: 18 June 2024

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/ Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx.

This description forms part of our auditor’s report.

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STATEMENT OF FINANCIAL ACTIVITIES

(INCLUDING INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 December 2023

INCOME:
Notes
Total
funds
2023
Total
funds
2022
£
£
CHARITABLE ACTIVITIES:
Interest on advances
2
19,165
21,228
Income from other trading activities:
Management charges to SNU
64,928
49,175
INVESTMENTS:
Income from investments
Rental income from investment
properties
3
276,285
166,864
246,941
164,044
TOTAL INCOME
527,242
481,388
EXPENDITURE:
Raising funds
4
56,524
56,566
Charitable activities:
5
404,396
323,558
TOTAL EXPENDITURE
460,920
380,124
Net income/(expenditure) for the year
before investment gains
66,322
101,264
Net loss/gains on investments
692,188
(1,016,573)
Net income/(expenditure) for the year
being net movement in funds
758,510
(915,309)
Reconciliation of funds:
Total funds brought forward
3,207,012
4,122,321
TOTAL FUNDS CARRIED FORWARD
3,965,522
3,207,012		 Total
funds
2023		 Total
funds
2022
£ £
3,965,522 3,207,012

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.The notes on pages pages 53 to 69 form part of these accounts.

BALANCE SHEET

As at 31 December 2023

Notes
2023
2022
£
£
Fixed assets
TANGIBLE FIXED ASSETS:
Freehold property
Computer equipment
Fixtures, fttings and equipment
11
11
11
183,732
920
2,519
187,799
1,652
2,932
INTANGIBLE FIXED ASSETS:
Computer equipment
12
8,000
9,000
INVESTMENTS:
Investments
Investment property
15
10
7,498,938
2,085,000
6,860,733
1,752,500
TOTAL FIXED ASSETS
9,779,109
8,814,616
Current assets
Programme related investments
Sundry debtors
Cash at bank and in hand
14
16
1,652,071
35,310
1,624,761
1,705,223
25,056
1,404,405
TOTAL CURRENT ASSETS
3,312,142
3,134,684
Liabilities
Creditors: amounts falling due within one
year
17
(8,103,465)
(6,598,734)
NET CURRENT LIABILITIES
(4,791,323)
(3,464,050)
Total assets less current liabilities
4,987,786
5,350,566
Creditors:amounts falling due after more
than one year
17
(1,022,264)
(2,143,554)
TOTAL NET ASSETS
3,965,522
3,207,012
The funds of the Trust:
Unrestricted funds:
General funds
Designated funds
Revaluation reserve
18
18
18
250,000
2,773,086
942,436
225,000
2,372,076
609,936
TOTAL FUNDS
3,965,522
3,207,012		 2023 2022
£ £
3,965,522 3,207,012

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BALANCE SHEET continued

As at 31 December 2023

The attached notes on pages pages 53 to 69 form part of these financial statements.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved by the Board of Trustees on 27 April 2024 and signed on their behalf by:

T. Coombe (Chair) | K. Smith (Secretary)

Registration No. 11382378 (England and Wales); Charity No. 1182379; Scottish Charity No: SC043897

CASHFLOW STATEMENT

For the year ended 31 December 2023

Notes
2023
2022
£
£
Cash Flows from Operating Activities
Net cash (used in) / provided by
operating activities
22
19,141
283,478
Cash Flows from Investing Activities
Rental income received
Investment income received
Purchase of tangible fxed assets
Purchase of investments
Proceeds from the sale of investments
One Year Fixed Term Investment Purchase
166,864
276,285
-
(1,351,755)
1,409,822
(300,000)
164,044
246,941
-
(731,971)
853,539
-
Net Cash Flows from Investing Activities
201,216
532,553
Change in cash and cash equivalents in
the year
220,357
816,031
Cash and Cash equivalents brought
forward
1,404,404
588,374
Cash and cash equivalents carried
forward
23
1,624,761
1,404,405		 2023 2022
£ £
1,624,761 1,404,405

NOTES TO THE FINANCIAL STATEMENTS

As at 31 December 2023

1 - ACCOUNTING POLICIES

(1) Legal status of the Charity

The charity is a company limited by guarantee, with no share capital and is incorporated in England and Wales (registration number 11382378). It has registered with the Charity Commission in both England and Wales (charity number 1182379) and Scotland (charity number SCO43897). The registered office is Burton End Lodge, Stansted Hall, Stansted Mountfitchet, Essex, CM24 8UD.

In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

(2) Basis of preparation and assessment of going concern

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1January 2019), the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The accounts are stated in pound sterling and rounded to the nearest pound.

(3) Going concern

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. Trustees have made the decision to invest some of the current assets over the years into listed investments and investment properties which provide a return, therefore giving rise to the charity showing negative net current liabilities. These can be sold should this become necessary to satisfy any debts.

The SNU Trust continues to consider forecasts and budgets to asses the ability of the charity to meet debts as they fall due. As such, they continue to adopt the going concern basis of accounts in the financial statements.

The Board has completed a comprehensive review and is confident of the SNU Trust’s ability to continue as a going concern.

(4) Group accounts

The financial statements contain information about the Trust as an individual charity and do not consolidate the subsidiary undertaking, Higginson Securities Limited (a company limited by guarantee). As the subsidury is dormant and is not material to the group, the charity has taken account of the exemption not to prepare group accounts.

(5) Funds structure

Unrestricted funds comprise of funds which the Trustees are free to use for any purpose in the furtherance of the charitable objectives. The Trustees have created five designated funds to be used to support specific areas of the charity.

Further details of each fund are disclosed in note 18 and in the reserves policy note in the trustees’ Annual Report.

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NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

(6) Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the investment advisor of the dividend yield of the investment portfolio. Income from Government Securities is recognised when it is received. Income accrued and not received on these securities at 31 December is included in the market value of the investments held.

Rental income under operating leases is charged to the profit and loss accounts on a straight line basis over the terms of the lease.

(7) Expenditure

Expenditure is recognised once there is a legal or constructive obligation committing the charity to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds include fees and charges for the management of the investment portfolio and an apportionment of support costs.

Expenditure on charitable activities includes interest paid on investor accounts, governance costs and an apportionment of support costs.

(8) Taxation and Irrecoverable VAT

The Trust is a registered charity and is exempt from corporate taxes, to the extent of operating within its charitable objectives. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

(9) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trust’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated is determined by analysis of staff time sheets completed on a daily basis.

(10) Tangible fixed assets

Tangible and Intangible fixed assets costing more than £1000 are capitalised at cost and are depreciated over their estimated useful lives as follows:

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

(11) Investment properties

Investment properties are valued by the trustees at fair value and are not depreciated.

The statement of financial activities includes the net gains and losses arising on the revaluation and disposals throughout the year.

(12) Programme related investments – concessionary loans

Concessionary loans are initially recognised and measured at the amount paid, with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest and adjusted if necessary for any impairment. Any impairment losses are immediately recognised in the Statement of Financial Activities.

The Trust agrees advances to churches which are subject to agreements that are signed by the church for the full value of the advance as soon as the advance is agreed but funds are only drawn down by the church as required. Where the advance is for rebuilding or renovation costs the full value of the advance may not be drawn down in the same year as that in which the agreement is signed. In these cases, the value of the advance reported in the accounts is that which has been drawn down in the year not the full value of the advance.

(13) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the bid price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

(14) Debtors

Sundry debtors are recognised at the settlement amount due. Prepayments are valued at the amount repaid net of any trade discounts due.

(15) Cash at bank and in hand

Freehold property 2% straight line Computer equipment 20% straight line (33.3% straight line in the prior year) Database 10% straight line

All fixtures, fittings and equipment should be assessed on acquisition and their useful life defined. The asset should then be depreciated over its expected life on a straight-line basis. The remaining useful life of the asset must be reviewed at least every year.

The need for any impairment of a fixed asset write-down is considered if there is concern over the

carrying value of an asset and is assessed by comparing that carrying value against the value in use or realisable value of the asset when appropriate.

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(16) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

(17) Financial instruments

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(19) Pension

Pension contributions to a defined contribution pension scheme are charged to the statement of financial activities as they occur. These contributions are invested separately from the Trust’s assets.

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

4 - RAISING FUNDS

4 - RAISING FUNDS
2023
£
2022
£
Investment portfolio management fees
Bank charges and interest
Support costs and governance (note 6)
45,058
1,167
10,299
47,560
929
8,077
56,524
56,566		 2023
£		 2022
£
56,524 56,566

All expenditure in the current and prior year relates to unrestricted funds.

2 - INTEREST ON ADVANCES

Interest on advances as received from the member churches of SNU are disclosed as charitable activities as they are fulfilling a primary purpose of the Trust.

3 - INVESTMENT INCOME

2023
£
2022
£
Bank and other interest receivable
Income from listed investments
42,719
233,566
9,355
237,586
276,285
246,941		 2023
£		 2022
£
276,285 246,941

Income from listed investments consists of:

2023
£
2022
£
Income from Global equities
Income from UK equities
Income from UK fxed interest / bonds
Income from overseas equities
Income from overseas fxed interest
Income from alternative investments
Interest
23,576
55,022
37,050
56,205
3,457
53,044
5,212
22,378
68,280
22,485
61,590
3,286
58,332
1,235
233,566
237,586		 2023
£		 2022
£
233,566 237,586

5 - CHARITABLE ACTIVITIES

2023
£
2022
£
Interest paid on investor deposits
Support costs (note 6)
Grants to Members
161,156
241,512
1,728
135,075
188,253
230
404,396
323,558		 2023
£		 2022
£
404,396 323,558

Included within charitable activites are designated funds of £10,000 (2022: £10,000)

Grants to institutions

Included within charitable activities is a grants made to 1 church amounting to £1728 (2022: £230) as follows:

Moston Spiritualist Church

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NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

6 - ALLOCATION OF SUPPORT COSTS

Current Year

Current Year
Cost Type:
Basis of
allocation
£
Charitable
activities
£
Raising
Funds
£
Total
2023
£
GOVERNANCE:
Auditor’s remuneration
Direct
24,740
-
24,740
Management committee expenses
Direct
144
-
144
Trustees’ indemnity insurance
Direct
285
-
285
AGM expenses
Direct
6,636
-
6,636
Legal & professional fees
Direct
10,690
-
10,690
42,495
-
42,495
SUPPORT:
Staf costs
Staf time
115,141
5,958
121,099
Staf training
Staf time
261
13
274
Depreciation
Staf time
5,906
306
6,212
Stationery and advertising
Staf time
1,747
90
1,837
Water rates
Staf time
68
4
72
Ofce expenses
Staf time
20,633
1,068
21,701
Telephone
Staf time
1,331
69
1,400
Postage
Staf time
187
10
197
Repairs and maintenance
Staf time
46,244
2,393
48,637
Light and heat
Staf time
2,661
138
2,799
Insurance
Staf time
4,838
250
5,088
241,512
10,299
251,811		 Basis of
allocation
£		 Charitable
activities
£		 Raising
Funds
£		 Total
2023
£
241,512 10,299 251,811

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

SUPPORT:
Staf costs
Staf time
Staf training
Staf time
Depreciation
Staf time
Stationery and advertising
Staf time
Water rates
Staf time
Ofce expenses
Staf time
Telephone
Staf time
Postage
Staf time
Repairs and maintenance
Staf time
Light and heat
Staf time
Insurance
Staf time		 105,460
271
9,687
7,119
60
19,299
1,990
37
6,487
1,860
4,826		 5,422
14
498
366
3
992
102
2
334
96
248		 110,882
285
10,185
7,485
63
20,291
2,092
39
6,821
1,956
5,074
188,253 8,077 196,330

7 - NET INCOME/(EXPENDITURE):

Net income/(expenditure) is stated after charging:

2023
£
2022
£
Auditor’s remuneration
24,740
23,100
Depeciation
6,212
10,185		 2023
£		 2022
£

8 - STAFF EMOLUMENTS

Prior Year

Prior Year
Cost Type:
Basis of
allocation
£
GOVERNANCE:
Auditor’s remuneration
Direct
Management committee expenses
Direct
Trustees’ indemnity insurance
Direct
AGM expenses
Direct
Legal & professional fees
Direct		 Basis of
allocation
£		 Charitable
activities
£		 Raising
Funds
£		 Total
2022
£
23,100
-
23,100
144
-
144
404
-
404
2,938
-
2,938
4,571
-
4,571
31,157
-
31,157
8 - STAFF EMOLUMENTS
2023
£
2022
£
Wages and salaries
104,889
96,224
Social Security costs
10,710
10,036
Employer’s contribution to defned
contribution pension scheme (snote 9)
10,490
9,622
126,089
115,882		 2023
£		 2022
£
126,089 115,882

The average number headcount of employees during the year was made up as follows:

2023
2022
Ofce and administration
3
3		 2023 2022

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NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

No employees had emoluments in excess of £60,000 (2022: none).

The Trust considers its key management personnel comprise the Finance Manager and other Trust Staff as appropriate. This therefore includes all 3 members of staff and their aggregate remuneration as noted above. Included within other trading income is £64,928 (2022: £49,175) in relation to salaries recharged to other organisations during the year.

None of the trustees received any remuneration or benefits in kind from the Trust during the period (2022: £Nil).

Expenses relating to travel and subsistence for attendance at trustee meetings were reimbursed to 5 trustees (2022: 5) during the period and amounted to £6,363 (2022: £2,934).

During the period Trustees Indemnity Insurance was purchased for £285 (2022: £404).

9 - PENSION COSTS

The Trust operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Trust in an independently administered fund. Contributions payable by the Trust amounted to £10,490 (2022: £9,622). At the year end, contributions totalling £685 (2022: £732) remained outstanding and are included in sundry creditors.

10 - INVESTMENT PROPERTIES

10 - INVESTMENT PROPERTIES IES
Valuation
2023
£
2022
£
As at 1 January 2023
1,752,500
1,707,500
Revaluation
332,500
45,000
As at 31 December 2023
2,085,000
1,752,500		 2023
£		 2022
£
2,085,000 1,752,500

The properties were revalued on at 31 December 2023 by Neil Oxford MRICS of Christie & Co in accordance with the requirements of RICS Valuation-Professional Standards 2017 and FRS102.

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

11 - TANGIBLE FIXED ASSETS

Freehold
property
£
Computer
equipment
£
Fixtures,
fttings and
equipment
£
Total
£
COST
As at 1 January 2023
203,333
20,660
4,692
228,685
Additions
Disposals
-
-
-
-
-
-
-
-
203,333
20,660
4,692
228,685
DEPRECIATION
As at 1 January 2023
Depreciation on Disposal
15,534
-
19,008
-
1,760
-
36,302
-
Charge for year
4,067
732
413
5,212
19,601
19,740
2,173
41,514
NET BOOK VALUE
At 31 December 2023
183,732
920
2,519
187,171
At 31 December 2022
187,799
1,652
2,932
192,383		 Freehold
property
£		 Computer
equipment
£		 Fixtures,
fttings and
equipment
£		 Total
£
183,732 920 2,519 187,171
187,799 1,652 2,932 192,383

12 - INTANGIBLE ASSETS

Computer
equipment
£
Total
£
COST
As at 1 January 2023
33,120
33,120
Additions
-
-
33,120
33,120
AMORTISATION
As at 1 January 2023
24,120
24,120
Charge for year
1,000
1,000
25,120
25,120
NET BOOK VALUE
At 31 December 2023
8,000
8,000
At 31 December 2022
9,000
9,000		 Computer
equipment
£		 Total
£		 Total
£
9,000 9,000

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NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

13 - FIXED ASSET INVESTMENTS

The charity holds more than 20% of the share capital of the following company:

Higginson Securities Limited is a company limited by guarantee and incorporated in the United Kingdom. The company is dormant.

Cost Type:
Holding
%
Capital and
Reserves 2023
£
Proft/(Loss)
for the year 2023
£
Higginson Securities Limited
(company no: 04208575)
100
1
-		 Holding
%		 Capital and
Reserves 2023
£		 Proft/(Loss)
for the year 2023
£

The financial statements contain information about the Trust as an individual charity and do not consolidate the subsidiary undertaking, Higginson Securities Limited (a company limited by guarantee), on the basis that it is a dormant company.

14 FIXED ASSET PROGRAMME RELATED INVESTMENTS

2023
£
2022
£
PROPERTY - PALMERSTON PLACE
Cost at 1 January
1,015,982
1,015,982
As at 31 December
1,015,982
1,015,982
CONCESSIONARY LOANS
Cost at 1 January
Repayments
689,241
(53,152)
741,354
(52,113)
Cost at 31 December
636,089
689,241
Total Programme reated investments
1,652,071
1,705,223
 2023
£		 2022
£
1,652,071 1,705,223

All concessionary loans made by the Trust are charged interest at 3.75% and are secured by way of a first legal charge on the properties to which the loans relate. These relate to loans given to member churches of the SNU which are part of the charitable purposes of the Spiritualists’ National Union Trust. There was one concessionary loans committed to or offered but not taken up at the period end to North Shield Spiritualists Church up to £50,000 (2022: £Nil).

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

15 - INVESTMENTS

MARKET VALUE
At 1 January
Additions
Disposals proceeds
Net gains / loss on investments
Movements in cash accounts
One Year Fixed Term Investment Addition
Market value at 31 December
Historical cost at 31 December
Investments are allotted to each range as
follows:
UK equities
UK fxed interest / bonds
Overseas fxed interest / bonds
Overseas equities
Alternative investments
Quilter Cheviot Investor Growth Fund
Cash		 2023
£		 2022
£
6,860,733
7,947,487
1,351,755
731,971
8,212,488
(1,409,822)
359,688		 8,679,458
(853,540)
(1,016,573)
7,162,354
36,584
300,000		 6,764,345
96,388
-
7,498,938
6,582,872		 6,860,733
6,612,088
2023
£		 2022
£
1,518,214
976,369
61,583
2,990,802
714,470
783,303
454,197		 1,508,364
768,751
112,396
2,695,051
950,854
707,704
117,613
7,498,938 6,860,733

All investments are held primarily for the purpose of providing an investment return.

For information:
Loans due within one year
Loans due after more than one year		 35,564
600,525		 33,937
655,304
636,089 689,241

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NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

16 - DEBTORS

2023
£
2022
£
Trade debtors
4,072
4,545
Other debtors
13,690
16,705
Prepayments and accrued income
17,548
3,806
35,310
25,056		 2023
£		 2022
£
35,310 25,056

17 - CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Investors’ balances:
Deposit account
Investment accounts
Super accounts
95 Day Notice accounts
Fixed rate bonds
Regular saver plus accounts
Amounts held on behalf of Members
Trade creditors
Sundry creditors
Accruals
Tax and social security		 2023
£		 2022
£
363,271
4,992,544
59,706
623,306
2,029,592
5,651
328,901
5,080,507
59,117
100,756
994,031
7,293
8,074,070
835
1,158
24,864
2,538
6,570,605
3,428
1,192
20,835
2,674
8,103,465 6,598,734

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

18 - FUNDS: MOVEMENTS IN YEAR

CURRENT YEAR
1 January
2023
£
Income
£
Expendture
£
Transfers
£
Gains/
(losses)
£
31 Dec
2023
£
UNRESTRICTED
FUNDS
General overheads
225,000
341,213
(249,399)
(66,814)
-
250,000
DESIGNATED FUNDS
Church deposits
Investments
Properties
Modernisation
1,212,519
915,261
233,794
502
-
-
-
-
-
-
-
-
(1,212,519)
(915,261)
(233,794)
(502)
-
-
-
-
-
-
-
-
Property Repairs
& Maintenance
Members
Disbursements
Contingency Fund
Investment Property
Valuation Reserve
Ray Taylor Memorial
Fund
-
-
-
609,936
10,000
166,864
19,165
-
-
-
(48,637)
(161,156)
-
-
(1,728)
(58,227)
341,991
2,143,398
-
1,728
-
-
359,688
332,500
-
60,000
200,000
2,503,086
942,436
10,000
3,207,012
527,242
(460,920)
-
692,188
3,965,522		 1 January
2023
£		 Income
£		 Expendture
£		 Transfers
£		 Gains/
(losses)
£		 31 Dec
2023
£
3,207,012 527,242 (460,920) - 692,188 3,965,522

The Ray Taylor Memorial Fund is in memory of Ray Taylor, a former trustee of the previous unincorporated entity, further details can be found in the Trustees Annual Report.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

REDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR MORE THAN ONE YEAR
2023
£
2022
£
Investor’s Balances - Fixed Rate Accounts
1,022,264
2,143,554
1,022,264
2,143,554		 2023
£		 2022
£
1,022,264 2,143,554

64

65

SNU T R UST AN N U AL R E P O R T

REPO RT AND S T AT EMENT OF AC C OUNTS 2 0 2 3

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

PRIOR PERIOD
1 January
2023
£
Income
£
Expendture
£
Transfers
£
Gains/
(losses)
£
31 Dec
2023
£
UNRESTRICTED
FUNDS
General Overheads
225,000
49,175
(325,956)
276,781
-
225,000
DESIGNATED FUNDS
Church deposits
Investments
Properties
Modernisation
Ray Taylor Memorial
1,540,345
1,465,336
314,824
6,880
5,000
21,228
246,941
164,044
-
-
-
(47,560)
-
(6,378)
(230)
(349,054)
312,117
(245,074)
-
5,230
-
(1,061,573)
-
-
-
1,212,519
915,261
233,794
502
10,000
Investment property
Valuation Reserve
564,936
-
-
-
45,000
609,936
4,122,321
481,388
(380,124)
-
(1,016,573)
3,207,012		 1 January
2023
£		 Income
£		 Expendture
£		 Transfers
£		 Gains/
(losses)
£		 31 Dec
2023
£
4,122,321 481,388 (380,124) - (1,016,573) 3,207,012

During the accounting period, the Board agreed a change in focus in the reserves policy which is reflected in the movements during the year. Further details can be found in the Trustees Annual Report.

Designated Fund – Charity Overheads

The General Fund will cover working capital for the SNU Trust for a 12-month period, currently £250,000 and representing 8.3% of the total Unrestricted Reserves and is reviewed annually at the December meeting of the SNU Trust to ensure that the level of the fund is set at an appropriate level.

Designated Fund – Members Disbursements

A designated fund should be set aside to cover for disbursements to members by way of credit interest and other payments during the course of the year.

Designated Fund – Property Costs

This designated fund makes allowance for the costs relating to properties owned by the SNU Trust for both investment purposes and as programme related investments.

Designated Fund – Ray Taylor Memorial Fund

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

19 - NET CURRENT ASSETS

CURRENT YEAR
Fixed
Assets
£
Net current
assets /
(liabilities)
£
Creditors
greater than
one year
£
Fund
balance
£
UNRESTRICTED FUNDS
General Overheads
9,779,109
(8,506,845)
(1,022,264)
250,000
DESIGNATED FUNDS
Property Repairs &
Maintenance
Member Disbursements
Contingency Fund
Ray Taylor Memorial Fund
-
-
-
-
60,000
200,000
2,503,086
10,000
-
-
-
-
60,000
200,000
2,503,086
10,000
Investment Property
Valuation Reserve
-
942,436
-
942,436
9,779,109
(4,791,323)
(1,022,264)
3,965,522
PRIOR PERIOD
UNRESTRICTED FUNDS
General funds
7,665,561
(5,297,007)
(2,143,554)
225,000
DESIGNATED FUNDS
Church deposits
Investments
Properties
Modernisation
Ray Taylor Memorial
-
915,261
233,794
-
-
1,212,519
-
-
502
10,000
-
-
-
-
-
1,212,519
915,261
233,794
502
10,000
Investment Property
Valuation Reserve
-
609,936
-
609,936
8,814,616
(3,464,050)
(2,143,554)
3,207,012		 CURRENT YEAR
Fixed
Assets
£
Net current
assets /
(liabilities)
£
Creditors
greater than
one year
£
Fund
balance
£
UNRESTRICTED FUNDS
General Overheads
9,779,109
(8,506,845)
(1,022,264)
250,000
DESIGNATED FUNDS
Property Repairs &
Maintenance
Member Disbursements
Contingency Fund
Ray Taylor Memorial Fund
-
-
-
-
60,000
200,000
2,503,086
10,000
-
-
-
-
60,000
200,000
2,503,086
10,000
Investment Property
Valuation Reserve
-
942,436
-
942,436
9,779,109
(4,791,323)
(1,022,264)
3,965,522
PRIOR PERIOD
UNRESTRICTED FUNDS
General funds
7,665,561
(5,297,007)
(2,143,554)
225,000
DESIGNATED FUNDS
Church deposits
Investments
Properties
Modernisation
Ray Taylor Memorial
-
915,261
233,794
-
-
1,212,519
-
-
502
10,000
-
-
-
-
-
1,212,519
915,261
233,794
502
10,000
Investment Property
Valuation Reserve
-
609,936
-
609,936
8,814,616
(3,464,050)
(2,143,554)
3,207,012		 CURRENT YEAR
Fixed
Assets
£
Net current
assets /
(liabilities)
£
Creditors
greater than
one year
£
Fund
balance
£
UNRESTRICTED FUNDS
General Overheads
9,779,109
(8,506,845)
(1,022,264)
250,000
DESIGNATED FUNDS
Property Repairs &
Maintenance
Member Disbursements
Contingency Fund
Ray Taylor Memorial Fund
-
-
-
-
60,000
200,000
2,503,086
10,000
-
-
-
-
60,000
200,000
2,503,086
10,000
Investment Property
Valuation Reserve
-
942,436
-
942,436
9,779,109
(4,791,323)
(1,022,264)
3,965,522
PRIOR PERIOD
UNRESTRICTED FUNDS
General funds
7,665,561
(5,297,007)
(2,143,554)
225,000
DESIGNATED FUNDS
Church deposits
Investments
Properties
Modernisation
Ray Taylor Memorial
-
915,261
233,794
-
-
1,212,519
-
-
502
10,000
-
-
-
-
-
1,212,519
915,261
233,794
502
10,000
Investment Property
Valuation Reserve
-
609,936
-
609,936
8,814,616
(3,464,050)
(2,143,554)
3,207,012		 CURRENT YEAR
Fixed
Assets
£
Net current
assets /
(liabilities)
£
Creditors
greater than
one year
£
Fund
balance
£
UNRESTRICTED FUNDS
General Overheads
9,779,109
(8,506,845)
(1,022,264)
250,000
DESIGNATED FUNDS
Property Repairs &
Maintenance
Member Disbursements
Contingency Fund
Ray Taylor Memorial Fund
-
-
-
-
60,000
200,000
2,503,086
10,000
-
-
-
-
60,000
200,000
2,503,086
10,000
Investment Property
Valuation Reserve
-
942,436
-
942,436
9,779,109
(4,791,323)
(1,022,264)
3,965,522
PRIOR PERIOD
UNRESTRICTED FUNDS
General funds
7,665,561
(5,297,007)
(2,143,554)
225,000
DESIGNATED FUNDS
Church deposits
Investments
Properties
Modernisation
Ray Taylor Memorial
-
915,261
233,794
-
-
1,212,519
-
-
502
10,000
-
-
-
-
-
1,212,519
915,261
233,794
502
10,000
Investment Property
Valuation Reserve
-
609,936
-
609,936
8,814,616
(3,464,050)
(2,143,554)
3,207,012		 CURRENT YEAR
Fixed
Assets
£
Net current
assets /
(liabilities)
£
Creditors
greater than
one year
£
Fund
balance
£
UNRESTRICTED FUNDS
General Overheads
9,779,109
(8,506,845)
(1,022,264)
250,000
DESIGNATED FUNDS
Property Repairs &
Maintenance
Member Disbursements
Contingency Fund
Ray Taylor Memorial Fund
-
-
-
-
60,000
200,000
2,503,086
10,000
-
-
-
-
60,000
200,000
2,503,086
10,000
Investment Property
Valuation Reserve
-
942,436
-
942,436
9,779,109
(4,791,323)
(1,022,264)
3,965,522
PRIOR PERIOD
UNRESTRICTED FUNDS
General funds
7,665,561
(5,297,007)
(2,143,554)
225,000
DESIGNATED FUNDS
Church deposits
Investments
Properties
Modernisation
Ray Taylor Memorial
-
915,261
233,794
-
-
1,212,519
-
-
502
10,000
-
-
-
-
-
1,212,519
915,261
233,794
502
10,000
Investment Property
Valuation Reserve
-
609,936
-
609,936
8,814,616
(3,464,050)
(2,143,554)
3,207,012
8,814,616 (3,464,050) (2,143,554) 3,207,012

The Ray Taylor Memorial Fund was established in memory of Ray Taylor, a former Trustee-Director of the SNU Trust, who was a proponent of churches facing financial hardship.

During 2023 the Board agreed to increase the available resource within the fund to £10,000.

Designated Fund – Contingency Fund

All remaining funds should be utilised to support the long-term future of the SNU Trust.

66

67

SNU T R UST AN N U AL R E P O R T

REPO RT AND S T AT EMENT OF AC C OUNTS 2 0 2 3

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

20 - OPERATING LEASES

NOTES TO THE FINANCIAL STATEMENTS continued

As at 31 December 2023

23 - ANALYSIS OF CASH AND CASH EQUIVALENTS

LESSOR:

At 31 December 2023 the Trust had agreed commitments as a lessor under non-cancellable operating leases to receive the receipts as follows:

2023 £
2022 £
Investment Properties:
Not later than one year
Later than one year and not later than fve years
Greater than fve years
164,741
258,333
528,000
167,024
390,075
561,000
951,075
1,118,099		 2023 £ 2022 £
951,075 1,118,099

21 - RELATED PARTIES

During the year, some members of the SNU Trust Board were part of the member churches who undertook transactions with the SNU Trust. All of these transactions were part of the normal activities of the Trust and were not influenced or controlled by those members of the Board. There are no other related party transactions (2022: none).

2023 £
2022 £
Cash at hand
1,624,761
1,404,405
Total
1,624,761
1,404,405		 2023 £ 2022 £
1,624,761 1,404,405

24 - ANALYSIS OF NET DEBT

At 1
Jan 2023
£
Cash
fows
£
Other
non-cash
changes £
At 31
Dec 2023
£
Cash and cash equivalents:
Cash at bank and in hand
1,404,404
220,357
-
1,624,761
Total
1,404,404
220,357
-
1,624,761		 At 1
Jan 2023
£		 Cash
fows
£		 Other
non-cash
changes £		 At 31
Dec 2023
£
1,404,404 220,357 - 1,624,761

22 - RECONCILATION OF NET INCOME TO NET CASHFLOW IN OPERATING ACTIVITIES

2023
£
2022
£
Net Income
Adjusted for:
Depreciation charges
Loss / gains on investments
Cash movement on investment portfolio
Dividends interest and rents from investments
Decrease (increase) in debtors
(Decrease)/Increase in creditors
758,510
6,212
(692,188)
(36,584)
(443,149)
42,899
383,441
(915,309)
10,185
1,016,573
(96,388)
(410,985)
45,268
634,134
Net cash provided by operating activities
19,141
283,478		 2023
£		 2022
£
19,141 283,478

68

69

SNU TRUST ANNUAL REPORT NOTES